Sebi to form advisory panel on financial technology issues

New Delhi, Feb. 9 -- With the aim to give a fillip to technology-based solutions, the Securities and Exchange Board of India (Sebi) announced the formation of an advisory committee on financial technology (fintech) issues to enable more mobilisation of domestic savings into the financial markets.
"To harness technology to enable persons in small towns with small amounts to invest in a retirement fund, we are going to form an advisory committee on fintech that will be led by some very strong business leaders from the industry," said, U.K.Sinha, chairman of Sebi, while speaking at the 11th India Digital Summit, organised by the Internet and Mobile Association of India( IAMAI) on Thursday.
On the importance of harnessing technology, he said given that technology is dynamic, Sebi has to move fast and realign with the changing times.
"With the economy doing well and a well-regulated market, the current numbers (for household savings invested in capital markets) are unacceptable. I feel that people are ready to invest, but issues related to convenience are holding them back, such as getting KYC (know your customer) done," said Sinha.
"Sebi is also working in the direction of having a single KYC across the entire financial sector since July 2016, so that the increasing number of investors coming into the system do not have to register themselves multiple times for KYC for different entities."
Reiterating the importance of convergence of policy and the regulatory agencies, Sinha said that he endorses the draft Indian Financial Code (IFC) and believes that there has to be an ongoing dialogue with the industry to move forward.
"Fintech companies deal with a lot of financial institutions like mutual funds, insurance and payment entities. However, there is a difference in them in terms of different policies and regulations," he added.
The advisory committee will also examine the best way forward to facilitate crowdfunding of genuine ventures, the Sebi chairman said, adding that the regulator has concerns about letting anonymous entities raise funds without any safeguards.
He further said this committee will help to address the issues and mobilise domestic savings, which will spur growth of the economy.